NATIONAL CO-OPERATIVE SCHEME FOR THE REGULATION OF TRAVEL AGENTS

Working Party report to Ministers on the
National Competition Policy Review
conducted by the Centre for International Economics

August 2002

1. BACKGROUND TO NATIONAL SCHEME

In September 1986, Ministers for Consumer Affairs in Western Australia, NSW, Victoria and South Australia signed a "Participation Agreement" in which the Participating States acknowledged the need for the establishment of a co-operative scheme for the regulation of travel agents ("National Scheme").

The Participation Agreement required member States to enact legislation containing "uniform provisions". These provisions included, inter alia, a requirement that travel agents be licensed and for those agents to become (and remain) members of the Travel Compensation Fund (TCF).

In December 1986 the TCF was established by Deed of Trust which made provision for payment of compensation to consumers who deal with travel agents that fail to account for money they receive.

Queensland, Tasmania and the ACT subsequently enacted legislation containing the "uniform provisions" and become signatories to the agreement.

In 1990 the Northern Territory (NT) also enacted legislation containing the uniform provisions, and signed the Participation Agreement. However, NT never became a functioning participant of the National Scheme because of other jurisdictions' concerns that its legislation did not, in practice, require agents to become and remain members of the TCF.

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